ArcelorMittal Confident About Steel Demands for Second Half of 2007

ArcelorMittal announces that it will maintain its current pricing structure for flat products in Europe for the third quarter.

Christophe Cornier, CEO of ArcelorMittal's Flat Carbon Europe division, said: "Despite robust economic growth in Western Europe, a continuously buoyant steel market in Eastern Europe and increasing tension on the iron ore and scrap markets, we do not intend to increase our prices in Q3 in order to maintain a sustainable market environment for our customers and a healthy inventory level."

The company remains confident about the demand for carbon steel products in Europe for the second half of the year. "Our forecast for Auto, Construction, Mechanical Equipment, Power Generation, Oil and Gas and the Tube industry in Europe is very robust. We expect that this year will continue as strongly as it has started," said Mr Cornier.

ArcelorMittal also announces that its output to the European market will be 3 to 4% lower in volume in Q3 than in Q2 as a result of mill outages related to necessary repair and inspection work. This will contribute to reduce the level of inventory of the market which is slightly inflated due to a recent surge of imports.

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